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Thanks Neo ji.

Rising Sun Jee,

I'm not sure about the 17billion figure, but yes, banks are allowed to add 0.75% extra as ROA in calculating their base rate.
NRB Circular on base rate: https://nrb.org.np/bfr/circular/2069-70/2069_70--Circular_08-%20Attachment-%20Base%20rate.pdf

ShareSansar's news post some year back regarding an advertisement in Kantipur: https://www.sharesansar.com/newsdetail/janata-bank-providing-13-interest-in-fixed-deposit-how-is-stanchart-able-to-provide-loan-at-9-99-only

As per Q1 75/76 financials, keeping 0.75% ROA, banks are entitled around Rs 23.49 billion (theoretically) just because of the base rate calculation guideline. Is it so? (Total Assets of 28 commercial banks = Rs 3,131.78 billion, so 0.75% of 3,131.78 billion = Rs 23.49 billion)

So, this also means that the larger the asset base (for e.g. loans), more exponentially the profits grow because this is extra return (i.e. ROA) on top of normal return (i.e. interest income).

Yup, input needed from mathematicians...anyone?

so no body knows.

are all entered share market with single belief : enter in jestha and exit in bhadra? Otherwise many would have supported hunger strike. If hunger strike's demands are implemented, no more market increase of 25-30% in 2/3 month and then exit and wish for crash.

Today, fake news controlled by 1000 gang and RAW has published, what I think is a lie about base rate calculation.

blackmandu

I hope accountant/mathematician/language expert explain to me.


Criminal gang says "bfis have been including income from assets/investment to calculate base rate. NRB is about to end it. So fake news says, if it happens, BFIs loose 17billion profit.

But my sense says, BFIs profit will increase by 17 billion. Since, that 17 billion has already payed tax, so 17 billion will be flat profit.


If BFIs have been including 17 billion profit from assets, then their base rate be lower. If they disclude 17billion, their base rate will increase by a tiny fraction, so they will be able to charge more interest on loan + they have 17 billion extra income.



So I would like to ask accountant/mathematician/language expert who is correct,- fake news controlled by RAW or YOUR'S TRULY